How Does A Recruitment Agency Work?

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Hiring a good employee is a challenging process, and for many companies, it is becoming increasingly difficult. The numbers don’t lie. According to research done by ManpowerGroup in early 2020, 54% of businesses have reported a lack of unqualified candidates. It was also estimated that the number of unfilled jobs worldwide will reach a whopping 85 million by 2030!

Fortunately, businesses can still turn to a recruiting agency that has the ability to make the entire hiring process so much easier. So, what is a recruitment agency? How does a recruitment agency work? These and other questions will be answered in this blog post, so make sure to stick around! Ready to start? Contact CIBR Warriors for the fastest way to qualified employees!

What is a Recruitment Agency, Exactly?

Finding the right talent remains a challenging process for many companies, regardless of their size. Reviewing applications, interviewing numerous candidates, and negotiating salaries all take valuable time away from the employer’s business and obligations, which can even hurt the company in the long run. Typically, the average US employer can spend around $4000 and take approximately 24 days to recruit a new hire. That is why businesses gladly partner up with recruiting agencies and let them take over the search for qualified talent.

A recruitment agency acts as a mediator between employers and employees, handling the tasks of identifying quality talent, vetting candidates, and presenting the best of the best candidates to clients. Recruitment agencies are usually confused with employment agencies, however, they are not the same. While a recruitment agency serves employers, employment agencies work with job seekers. Also, a recruitment agency is putting an emphasis on finding top talent for permanent positions, including upper-management and executive job positions.

How Does a Recruitment Agency Work?

When a company needs to hire new staff, an employer will contact a recruiting agency specializing in their industry. The employer will then specify the job requirements, the number of employees needed, the pay rate, and for what period the employee needs to work (temporary or permanent position).

Once a company hires a recruitment agency, the process of finding a top talent generally goes like this:

1. Coming to an Agreement

When a company has decided to work with a specific recruitment agency, they will first need to come to an agreement. The first thing is to agree to payment terms, typically, a retained fee or contingency fee structure. However, they will also need to agree on the company’s expectations for the work. For instance, some recruitment agencies offer a guarantee period. This is a good thing since it ensures that a company will receive a great hire. Nevertheless, if the latest hire is not a good fit, the recruiter will go back to the drawing board and continue to search for the top talent.

2. Profiling

The next thing is setting up a meeting between the company and a recruitment agency where they will discuss the company’s hiring needs. The company may need to fill multiple positions or have a critical executive position open that must be urgently filled. Whatever the case may be, the agency recruiter needs to gather as much information as possible so they can identify and attract the best of the best candidates for the open position. The company usually provides a clear job description, a list of requirements, necessary skills and attributes, as well as any other important criteria.

3. Sourcing

After the previous steps are done, the agency recruiter will scour their database and networks for qualified top talent and use influencers to reach potential candidates within their unique networks and circles. When the agency finally creates a list of potential candidates, it will then screen these individuals and set up interviews. In general, only 2% of applicants will reach interviews.

4. Interviewing

The interview process is divided into two parts. First, the recruiting agency will organize candidate interviews with their agency, which will allow the recruiting agency to get a better feel for the potential candidates and whether they are a good match for the company that is looking to hire them. During this process, the recruiting agency will brief potential candidates on the company’s needs, culture, and long-term vision.

After using the interviews to narrow the pool of candidates further, a recruiting agency will brief the company on each candidate and afterward will organize final interviews. On average, it takes three interviews before an offer will be extended to a suitable candidate.

5. The Extension of the Offer and Negotiation

Once a company chooses the candidate they would like to hire, a recruiting agency will handle the offer and compensation negotiations with the candidate. By taking over this part of the hiring process, a recruitment agency saves the company’s time and ensures the potential candidate has a primary point of contact throughout their experience.

6. Onboarding

Once a candidate accepts the job offer, the recruiting agency might assist the company with the employee onboarding, which can be very useful since only around 12% of employees are satisfied with their employers’ onboarding efforts. However, this is not the only thing a recruiting agency will do. Beyond assisting both parties in completing the necessary paperwork for employment, the recruiting agency will also continue to make sure that the new hire feels comfortable in the new company.


It’s not a surprise that saving time and resources is the number one reason for most companies using the services of recruitment agencies. With this responsibility lifted from their shoulders, companies can focus on day-to-day business instead of wasting their valuable time going through resumes and scheduling job interviews.

Another plus is the fact that recruiting agencies often specialize in a specific industry, therefore, they know what to look for, understand the terminology, and are familiar with the ongoing trends. Their expertise can be used not only to secure the top talent but also to provide advice on retaining and using the top talent in ways that companies might not have considered before.

Aside from their specialization, recruitment agencies also have an extensive network they provide access to. The extensive vetting and checking of every potential candidate they perform mean that the people they recommend are guaranteed to be of the highest quality. Recruiting agencies also have the ability to encourage passive candidates to consider a career change. This ability particularly comes in handy while negotiating in tricky situations as well as in managing the company’s overall employer brand.

Now that you know what recruitment agencies are and how they operate, be sure to communicate your needs and goals to the chosen recruiting agency every step of the way. That way, you will be in the best position to maximize your working relationship with them and get the best talent possible.

Hundreds of new candidates are looking for job openings every day, and CIBR Warriors are there to help you find the right one for you. For more help on advancing your career or finding a perfect candidate in IT and Cybersecurity, contact us. We’d be happy to answer your questions and provide you with the best advice for getting started.

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